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  • New Members

    Introduction

    Hello All,
    I’m Jon and I’m new to property investing so I am looking to learn as much as possible from as many people as I can find. Even if it’s just what not to do!
    I started my own Electrical contracting business a few years ago and poured all my resources into it, I’m very glad to say it has been a success and has started being profitable.
    My plan was to build up my Profits to invest in my local area (Sussex and Surrey). However as I am sure everyone knows its expensive down here when starting out and for the next few years with mortgage products the way they are I might be priced out of the market.
    I have started to look into areas like Yorkshire and Lancashire and would like to make contact with other investors who have experience with the market there.
    I am also looking for recommendations for Solicitors and mortgage brokers.
    My ultimate goal is to be a developer, using my skills, inside knowledge and contacts I maintain in the trades but that’s for the future!
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    Welcome to the site.
    Let's see what people have to say in terms of advice!
    John Corey
    https://www.ChelseaPrivateEquity.com/blog
    Follow me on Twitter -> https://www.twitter.com/john_corey
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    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.

    Welcome Jon, great to have you on board.
    Why flat cap and ferret land? Some of the towns on the south coast are reasonably priced, or are you thinking of a particular type of property that's more expensive? What about flats? The standard wisdom is to buy property nearer to where you are so you can keep an eye on it. Me, my perfect property will be within lobbing distance and not one that requires a northern dictionary :-)
    Best of luck.
    PS: Good to have a spark on the forum.
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    Hello John
    Welcome to the forum, I'm sure you will benefit from the vast knowledge of the regular posters and maybe some of the newer people like me might also be encouraged to join in.
    I was very interested to see your posting on the forum as like you our local area is the Surrey, Sussex border. We started investing locally in July 2007 (yes when prices were at their peak) and we are looking to continue investing. As long term investors we were investing for long term capital gain and initially were just about covering all our costs. Fortunately for us and due to the wise advice of our local mortgage broker who suggested trackers for all our properties, we are now making a very healthy profit on a monthly basis with our major 'problem' being that we will have to pay some tax on our profit! We have also realised that we need to invest for regular cashflow in the future with capital gain being the cherry on the top as and when it appears.
    As Marcus suggests it is often easier to invest locally as then you can put in more time and have a much better instant knowledge of which places make good rental areas and which are the parts you might prefer to shy away from. We are lucky that due to the airport and the fast train links to London there is a great rental market which has not been impacted too badly by the economic downtourn. As a Southerner I would not have first hand knowledge of how it is affecting other areas of the country and their rental demand and would have to rely far more on letting agents etc to determine this.
    My point being that it can be harder to make the figures work in the South East but that is not necessarily true and the upside of that is that prices are higher because demand is too.
    Rather strangely rent prices have not really increased that much over the last 10 years or so in our area and when we first started out we boldly decided to market our properties at 10% higher than similar properties. This caused much head shaking from some people but we let the first property to the first viewer. The second viewer also wanted it so we asked if they could hang on another 3 weeks until we completed on an identical property round the corner which they did! Fortunately it did not need much doing to it and we were able to get in between exchange and completion. They moved in 30 minutes after we completed and have just signed another 12 month lease, having been there 18 months already.
    I have been disappointed of late to see that not only have agents in the area left rates pretty much where we pushed them to but some are also letting them drop slightly. Considering there are not that many houses available I find this annoying.
    That brings me to another point that our area has been flooded with flats recently and you only need to do a search on Rightmove to see that whilst there are supposedly 16 two bed houses available within a mile radius, there are 81 two bed flats in the same area. The reason I say there are supposedly 16 houses available is because agents leave them on even months after they have been let to generate interest. If you look in the text 5 are actually let so the reality is that only 11 are available to 81 flats. I know which I would have a better chance of renting out again if it became vacant.
    I hope that might have been of some help to you - remember there is always the odd bargain to be had and with your local contacts and own skills you could easily do a bit of cosmetic updating to a property to increase the value. Yes the lack of mortgage products is making it difficult and larger deposits are required but always make sure you do a full analysis of your figures because remember and I know it sounds obvious, lower prices are often a result of lower demand and usually a result of lower achievable rental income.
    Good luck and best wishes with your new venture.
    Vikki
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    Vikki: That is such a great and informative post, thanks.
    Jon: Might be a good idea to swap notes with Vikki and her hubby as they live in the same part of England and as they've been at it a little longer they may be able to offer a different perspective on areas.
    Good luck.
    PS: Hubby Steve is a fellow tradesperson so you probably have a similiar view on things. (Apparently he builds wooden planes?)
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    Thanks for the replies and the welcome,
    The problem that I have is that most of my profits have been re invested in the business. I have to keep a large reserve or float for the business to operate without going into an overdraft situation.
    I have enough in the reserve to invest in a property in the south but it would leave me exposed and to be honest nervous without a financial safety net to fall back on in the event of clients going under owing me a lot of money. It has already happened on a smaller scale and it was not a pleasant experience!
    So I was thinking to lower the initial outlay by investing further north.
    Alternatively if I was to wait another 12 months I would be in a much better position financially to invest closer to home.
    I agree completely with Vicki’s points about the airport and local knowledge and I think that this area is a great place to invest and it’s certainly where I plan to do most of my investing. If you could forward your mortgage brokers details I would be grateful.
    Will let you all know which way I jump and share my success or failures with the forum!
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    Jon,
    If your financial position will be a lot better in 1 year I would wait to invest. It makes no sense to stretch by going up north when in 1 years time you would not have done so.
    If the north makes sense it makes sense. If it is really just a stop-gap then avoid the choice.
    I am not a fan of staying local. Managing at a distance does require different skills and is likely marginally less profitable (you have to outsource all the work).
    John Corey
    https://www.ChelseaPrivateEquity.com/blog
    Follow me on Twitter -> https://www.twitter.com/john_corey
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    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.

    Thanks Richard,
    I will have a look at that.
    Jon.
    Richard Greenland said:
    As John says, out of area you have to outsource all the work. As a skilled tradesman like you (carpenter in my case) with my own contacts I obvoulsly don't want to do this, and you may feel the same. Also I have yet to see anyone with anything much good to say about letting agents! Have I missed a few vital posts on this site? Maybe its different in the US John?Regarding ambitions to do prop development and the pitfalls thereof, I'd recommend a quick read of Marcus's thread Small Development Tips here.Rich
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    Hi all
    I’m Michael LPD I'm a small part-time property developer and Landlord. I have several properties that I have renting at present. I'm also a foster carer living in the Midland however, was born and raise in London and the south east. I work as a part-time computer technician in my local University. I like to listen and learn from other peoples mistakes........ as your own always hurts so badly, that’s what I’ve experience in life.
    My aim is to build a portfolio that can help me with my pension and give me a cash flow that gives me a life style that makes me happy and contented. I'm 44 and about 10 years and 3 months from my retirement I hope. I don’t want to retire at 65 like my parents did.
    Life is not a rehearsal, you’re on this planet once so enjoy it to the best of your ability
    I have joined this site to help me find ways of getting more properties and learn new strategies on managing my portfolio. I want to build it with strong and deep routed foundations that with enough cash flow it can run it self and I can just tweak it as it grows. Any ideas guys my ears are wide open and my brain is sponge ready to soak up the property knowledge and to share mind too.
    Kind regards
    Michael
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    Hi Michael.
    Sounds like you would know more about property than me Smile, im just starting out but im thinking along similar lines to you.
    There is a lot of knowledge to be gained in the forum im sure that it will be of great value to you,
    Jon.

    Michael Penniecook said:
    Hi allI’m Michael LPD I'm a small part-time property developer and Landlord. I have several properties that I have renting at present. I'm also a foster carer living in the Midland however, was born and raise in London and the south east. I work as a part-time computer technician in my local University. I like to listen and learn from other peoples mistakes........ as your own always hurts so badly, that’s what I’ve experience in life.My aim is to build a portfolio that can help me with my pension and give me a cash flow that gives me a life style that makes me happy and contented. I'm 44 and about 10 years and 3 months from my retirement I hope. I don’t want to retire at 65 like my parents did.Life is not a rehearsal, you’re on this planet once so enjoy it to the best of your abilityI have joined this site to help me find ways of getting more properties and learn new strategies on managing my portfolio. I want to build it with strong and deep routed foundations that with enough cash flow it can run it self and I can just tweak it as it grows. Any ideas guys my ears are wide open and my brain is sponge ready to soak up the property knowledge and to share mind too.Kind regardsMichael
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